More Home Owners Find Loans to Pay for Solar

More Home Owners Find Loans to Pay for Solar

As solar panel prices drop, more home owners are finding the systems within reach.

To help cover the costs, more lenders are offering home owners help in buying solar systems for their home, which is prompting a big growth in buying over leasing these systems.

Home owners are working with lenders or specialty lenders to qualify for a loan to pay for these pricey systems and to take advantage of federal tax credits that could be worth up to 30 percent of the value.

Prices for solar systems have dropped to $20,000 to $30,000 for a typical home, which has brought ownership of these systems more within reach to more households.

"It became glaringly obvious that someone needed to provide a path to ownership for these systems. It's not a $40,000 or $50,000 expense anymore," Jim Petersen, founder of PetersenDean, one of the largest U.S. installers, told Reuters.

For example, solar company Sungevity has partnered with Admirals Bank in Boston on a loan. The loan works much like a second mortgage. Clean Power Finance, which offers solar financing products to installers, is preparing to roll out a loan to consumers soon.

Also, in some places, such as Arizona, a large number of solar systems are being financed through home mortgages and equity loans, Reuters reports.